Business

Aromatic rice production nearly doubles in seven years

10.23 lakh tonnes of aromatic rice was produced in FY24, up from 5.79 lakh tonnes in FY18
Production of Aromatic Rice Bangladesh

The production of aromatic rice has nearly doubled in Bangladesh over the past seven years, with farmers showing interest in growing the grain in order to profit from its higher prices compared to traditional parboiled rice.

Farmers produced 5.79 lakh tonnes of aromatic rice in the fiscal year 2017-18, while the amount produced in the fiscal year 2023-24 was 10.23 lakh tonnes, according to a food ministry document.

Mohammad Khalequzzaman, director general of the Bangladesh Rice Research Institute (BRRI), said exports are the main reason for increased cultivation.

The government allowed exports of premium quality rice a few years ago.

As a result, many farmers focused on producing aromatic rice, which led to a significant rise in production, he added.

Khalequzzaman further stated that another reason for the expansion of aromatic rice cultivation is that this variety of grain provides better yields and is tastier compared to local varieties.

Aromatic rice is cultivated in various districts of the country, with the same variety often being referred to by different names depending on the region. This type of rice is grown during the Aman season.

BRRI data shows that 33 types of aromatic rice are currently being cultivated in Bangladesh.

An official of the food ministry said rising demand in both local and international markets, coupled with attractive prices for aromatic rice, motivated farmers to expand cultivation in recent years.

As such, traditional indigenous varieties are being overshadowed as farmers shift to those offering double the yield and higher profitability.

While local varieties typically produce 187 to 299 kilograms (kgs) of rice per bigha, high-yielding varieties can produce between 448 and 821 kgs per bigha.

The Department of Agricultural Extension (DAE) reports that the country's climate and soil conditions are well-suited for cultivating aromatic rice.

Naogaon, Rajshahi, Panchagarh, Rangpur, Mymensingh, Dinajpur, Sherpur, and Thakurgaon are major hubs for the commercial production of aromatic rice in Bangladesh.

Another official of the food ministry said the demand for aromatic rice is rising due to improvements in the socioeconomic conditions of the country's population.

Due to this, farmers are becoming increasingly attracted to crops that offer good prices, leading to a near doubling of aromatic rice production in recent years.

Besides, even major corporate groups have entered the aromatic rice market.

But while production has grown rapidly, consumer demand has not kept pace, prompting many traders to urge the government to facilitate exports, the official added.

He also said the price difference between high-quality parboiled rice and aromatic rice is only Tk 10 per kilogramme, which is not favourable for farmers.

So, allowing limited exports could benefit farmers by providing them with higher returns, he added.

On the other hand, officials of the Food Planning and Monitoring Unit have cautioned against the potential downsides of exports.

One noted that as the availability of agricultural land in the country is shrinking, an increase in aromatic rice cultivation could lead to a decline in coarse rice production, negatively impacting the primary food supply.

"Therefore, a careful balance must be maintained," he added.

Food Adviser Ali Imam Majumder said: "We are currently importing a significant amount of rice; now is not the right time to export aromatic rice."

"If allowing limited exports benefits farmers, it would require approval from the highest levels of government. However, there has been no indication of such a decision so far," he added.

EXPORT OF AROMATIC RICE

As per data from the Export Promotion Bureau (EPB), export earnings from aromatic rice amounted to $2.88 million in the fiscal year 2019-20 before decreasing to $2.06 million in the next year.

In the fiscal year 2021-22, $1.07 million worth of aromatic rice was exported, but exports were halted in the following fiscal year, 2022-23, amid a ban.

In the fiscal year 2023-24, exports amounted to just $0.06 million.

The EPB reports also showed that no aromatic rice has been exported as of December in the fiscal year 2024-25.

AROMATIC RICE IMPORT HALTED FOR TWO YEARS

No aromatic rice was imported by Bangladesh in the fiscals 2023-24 and 2024-25, according to a document of the food ministry.

However, imports totalled 2.61 tonnes in the fiscal year 2022-23, 37.76 tonnes in the fiscal year 2021-22, and 54.14 tonnes in the fiscal year 2020-21, the document showed.

IMPORTS OF LONG-GRAIN BASMATI RICE DECLINE

The food ministry document also showed that in the fiscal year 2020-21, imports of long-grain basmati rice totalled 1,891 tonnes before rising to 6,334 tonnes in the fiscal year that followed.

The figure increased to 7,712 tonnes in the fiscal year 2022-23.

However, imports decreased to 4,615 tonnes in the fiscal year 2023-24 before dropping to just 799 tonnes in the fiscal year 2024-25.

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Aromatic rice production nearly doubles in seven years

10.23 lakh tonnes of aromatic rice was produced in FY24, up from 5.79 lakh tonnes in FY18
Production of Aromatic Rice Bangladesh

The production of aromatic rice has nearly doubled in Bangladesh over the past seven years, with farmers showing interest in growing the grain in order to profit from its higher prices compared to traditional parboiled rice.

Farmers produced 5.79 lakh tonnes of aromatic rice in the fiscal year 2017-18, while the amount produced in the fiscal year 2023-24 was 10.23 lakh tonnes, according to a food ministry document.

Mohammad Khalequzzaman, director general of the Bangladesh Rice Research Institute (BRRI), said exports are the main reason for increased cultivation.

The government allowed exports of premium quality rice a few years ago.

As a result, many farmers focused on producing aromatic rice, which led to a significant rise in production, he added.

Khalequzzaman further stated that another reason for the expansion of aromatic rice cultivation is that this variety of grain provides better yields and is tastier compared to local varieties.

Aromatic rice is cultivated in various districts of the country, with the same variety often being referred to by different names depending on the region. This type of rice is grown during the Aman season.

BRRI data shows that 33 types of aromatic rice are currently being cultivated in Bangladesh.

An official of the food ministry said rising demand in both local and international markets, coupled with attractive prices for aromatic rice, motivated farmers to expand cultivation in recent years.

As such, traditional indigenous varieties are being overshadowed as farmers shift to those offering double the yield and higher profitability.

While local varieties typically produce 187 to 299 kilograms (kgs) of rice per bigha, high-yielding varieties can produce between 448 and 821 kgs per bigha.

The Department of Agricultural Extension (DAE) reports that the country's climate and soil conditions are well-suited for cultivating aromatic rice.

Naogaon, Rajshahi, Panchagarh, Rangpur, Mymensingh, Dinajpur, Sherpur, and Thakurgaon are major hubs for the commercial production of aromatic rice in Bangladesh.

Another official of the food ministry said the demand for aromatic rice is rising due to improvements in the socioeconomic conditions of the country's population.

Due to this, farmers are becoming increasingly attracted to crops that offer good prices, leading to a near doubling of aromatic rice production in recent years.

Besides, even major corporate groups have entered the aromatic rice market.

But while production has grown rapidly, consumer demand has not kept pace, prompting many traders to urge the government to facilitate exports, the official added.

He also said the price difference between high-quality parboiled rice and aromatic rice is only Tk 10 per kilogramme, which is not favourable for farmers.

So, allowing limited exports could benefit farmers by providing them with higher returns, he added.

On the other hand, officials of the Food Planning and Monitoring Unit have cautioned against the potential downsides of exports.

One noted that as the availability of agricultural land in the country is shrinking, an increase in aromatic rice cultivation could lead to a decline in coarse rice production, negatively impacting the primary food supply.

"Therefore, a careful balance must be maintained," he added.

Food Adviser Ali Imam Majumder said: "We are currently importing a significant amount of rice; now is not the right time to export aromatic rice."

"If allowing limited exports benefits farmers, it would require approval from the highest levels of government. However, there has been no indication of such a decision so far," he added.

EXPORT OF AROMATIC RICE

As per data from the Export Promotion Bureau (EPB), export earnings from aromatic rice amounted to $2.88 million in the fiscal year 2019-20 before decreasing to $2.06 million in the next year.

In the fiscal year 2021-22, $1.07 million worth of aromatic rice was exported, but exports were halted in the following fiscal year, 2022-23, amid a ban.

In the fiscal year 2023-24, exports amounted to just $0.06 million.

The EPB reports also showed that no aromatic rice has been exported as of December in the fiscal year 2024-25.

AROMATIC RICE IMPORT HALTED FOR TWO YEARS

No aromatic rice was imported by Bangladesh in the fiscals 2023-24 and 2024-25, according to a document of the food ministry.

However, imports totalled 2.61 tonnes in the fiscal year 2022-23, 37.76 tonnes in the fiscal year 2021-22, and 54.14 tonnes in the fiscal year 2020-21, the document showed.

IMPORTS OF LONG-GRAIN BASMATI RICE DECLINE

The food ministry document also showed that in the fiscal year 2020-21, imports of long-grain basmati rice totalled 1,891 tonnes before rising to 6,334 tonnes in the fiscal year that followed.

The figure increased to 7,712 tonnes in the fiscal year 2022-23.

However, imports decreased to 4,615 tonnes in the fiscal year 2023-24 before dropping to just 799 tonnes in the fiscal year 2024-25.

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